Introduction Working Group: Food Logistics - BOKU · 22.01.14 Institut für Produktionswirtschaft und Logistik 1 Introduction Working Group: Food Logistics Spring 2016 –Christian

Institut für Produktionswirtschaft und Logistik22.01.14 1

Introduction

Working Group: Food LogisticsSpring 2016 – Christian Fikar

University of Natural Resources and Life Sciences, ViennaInstitute of Production and Logistics

Institut für Produktionswirtschaft und Logistik

Introduction

Spring 2016 2

Institute of Production and

Logistics at BOKU, Vienna

Focus on problem and

application oriented

research

Six main research fields

Timber Industry

Bioenergy

Food Logistics

Intermodal Transportation

Humanitarian Logistics

Sparkling Science


Food Logistics - Motivation

Spring 2016 3

Numerous areas of importance with great research potential

Roughly one third of all food is lost or wasted world-wide (FAO, 2016)

Lack of coordination between supply chain actors

Poor forecasting and inefficient inventory management

Mishandling and delays in transportation and logistics Source: UN (2015)



Spring 2016 4

Transportation and logistics relate to 9.4% of energy consumption in

the food industry within the EU (Monforti-Ferrario et al., 2015)

Inefficiencies: truck idling, low loading factors, empty backhauls

Stake of food price related to logistics expenses range from 6.74%

(GMA, 2010) to up to 48% (Schwartz, 2011)

High potential of optimisation techniques to lower costs and reduce lead times

Source: UN (2015)



Current Trends

Concentration and globalisation

Increased product variety

Mass customisation, customised food

Niche markets

Lactose-free, Gluten-free, Dairy-free, etc.

Stricter environmental regulations

CO2 emissions

Food waste

Traceability

Bioeconomy strategy of the European Commission

Strong support for related research activities

Spring 2016 5

Source: Mars, Incorporated (2016)

Source: European Commission (2016)



Specifics in Food Logistics

Cold chain management

Product durability, lead times, shelf-life

Food safety

Traceability (RFID)

Quality management and assurance

Waste and hazards

Reverse logistics, milk-run

Hazardous goods transportation

Consolidation and horizontal cooperation

Collection center, distribution networks

Shared equipment and resources

Spring 2016 6

Source: Collins, E. (2015)

Source: Food Safety Magazine (2014)


Research Fields of Focus

Supply Chain Optimisation

Supply Chain Coordination

Inventory Optimisation

Sustainable Supply Chain Management

Green Procurement

Green Logistics

Operations Research

Facility Location

Vehicle Routing

Supply Chain Simulation

Spring 2016 7

Source: Groupe Casino (2009)

Source: Own Illustration

Source: Own Illustration


Research Topics of Interest

The impact of transport disruptions on food supply

Food industry highly vulnerable to disruptions in transportation

Break in cold chain leads to spoilage

Food safety and traceability issues reduce flexibility

Delays reduce shelf life and value of goods

Increased costs for storage

Impact of disruptions:

L.A/Long Beach Port lockout: Estimated loss to farmers of approximately

$500 million per week (Pullman and Wu, 2012)

Transport distances of mineral water are predicted to increases up to 90%

as a result of a heat wave in Germany (SEAK, 2015)

Spring 2016 8

Source: Fikar et al. (2016a)


Research Topics of Interest

Consolidation and distribution strategies for food deliveries

Stricter environmental regulations and urbanisation

complicate last mile-distribution of food products

High potential for horizontal cooperation

in the food industry to share resources

Various solution methods in operations

research available to optimise routing

and scheduling of resources

Vehicle routing

Facility location planning

Multi-echelon optimisation

Development of decision-support systemsSpring 2016 9

Source: Fikar et al. (2016b)


Summary

Conclusions

High need for research in food logistics to meet future challenges in

the industry

Currently little focused research on logistics-related topics available

Wide range of interesting research questions in both a domestic and

global context

Large synergies with various BOKU core topics

New Working Group ‚Food Logistics‘ established

Spring 2016 10


Summary

Next steps

Introduction and promotion of the working group to various

stakeholders

Establishment of industry collaborations and research partnerships

Acquisition of research funding (FFG, FWF, Horizon2020)

Questions?

Contact us at

[email protected] or [email protected]

Further information: http://www.wiso.boku.ac.at/en/pwl/

Spring 2016 11

mailto:[email protected]


http://www.wiso.boku.ac.at/en/pwl/


References

Statistics

FAO (2016) Food Loss and Food Waste. http://www.fao.org/food-loss-and-food-waste/en/ (15.03.2016).

GMA (2010) The GMA 2010 Logistics Benchmark Report - Performance reaches all-time high during

economic depression. The Grocery Manufacturers Association and IBM. Washington, D.C.

Pullmann, M., Wu, Z. (2012) Food Supply Chain Management. Taylor & Francis Group, New York, NY.

Monforti-Ferrario et al. (2015) Energy use in the EU food sector: State of play and opportunities for

improvement. Joint Research Centre, European Commission, Luxembourg.

Schwartz, JZ. (2011) Food Prices: Eating the Cost of Logistics. The World Bank, 20.06.2011.

http://blogs.worldbank.org/latinamerica/food-prices-eating-the-cost-of-logistics (16.03.2016)

SEAK (2015) Vermeidung von Engpässen in der Lebensmittelversorgung. Projekt Sicherung der

Lebensmittel und Lebensmittelwarenketten. Dialogveranstaltung, 10. Dezember 2015, Hamburg.

Spring 2016 12

http://www.fao.org/food-loss-and-food-waste/en/

http://blogs.worldbank.org/latinamerica/food-prices-eating-the-cost-of-logistics


References

Images

Collins, E. (2015) France food waste law comes with fines and prison time. Politico.

http://www.politico.eu/article/france-food-waste-law-comes-with-fines-and-prison-time/ (15.03.2016).

European Commission (2016) Bioeconomy - Policy.

https://ec.europa.eu/research/bioeconomy/index.cfm?pg=policy (16.03.2016)

Fikar, C., Hirsch, P., Posset, M., Gronalt, M. (2016a) Impact of transalpine rail network disruptions: A

study of the Brenner Pass. Technical Report.

Fikar, C., Gronalt, M., Hirsch, P. (2016b) A decision support system for coordinated last-mile distrubtion.

Technical Report.

Food Safety Magazine (2014) IFT’s Global Food Traceability Center: Untangling the Food Supply Chain.

June/July 2014. http://www.foodsafetymagazine.com/magazine-archive1/junejuly-2014/ifte28099s-global-

food-traceability-center-untangling-the-food-supply-chain/ (16.03.2016)

Groupe Casino, 2009. 2009 Annual and Sustainable Development Report. Saint-Etienne, France,

http://www.groupe-casino.fr/IMG/pdf/CASINO_RA_EN_09.pdf, (15.03.2016).

Mars, Incorporated (2016) My MMs. https://www.mymms.com/configurator.do (16.03.2016)

UN (2015) Sustainable Development – Knowledge Platform. United Nations,

https://sustainabledevelopment.un.org/ (16.03.2016)

Spring 2016 13

http://www.politico.eu/article/france-food-waste-law-comes-with-fines-and-prison-time/

https://ec.europa.eu/research/bioeconomy/index.cfm?pg=policy

http://www.foodsafetymagazine.com/magazine-archive1/junejuly-2014/ifte28099s-global-food-traceability-center-untangling-the-food-supply-chain/

http://www.groupe-casino.fr/IMG/pdf/CASINO_RA_EN_09.pdf

https://www.mymms.com/configurator.do

https://sustainabledevelopment.un.org/


Thank you for your Attention!

University of Natural Resources and Life Sciences, Vienna

Department of Economics and Social Sciences

Institute of Production and Logistics

Manfred Gronalt ([email protected])

Christian Fikar ([email protected])

Feistmantelstraße 4, A-1180 Vienna

Tel: +43 1 47654-4426, Fax: +43 1 47654-4413

Spring 2016 14



Documents

Introduction Working Group: Food Logistics - BOKU · 22.01.14 Institut für Produktionswirtschaft und Logistik 1 Introduction Working Group: Food Logistics Spring 2016 –Christian